Vision Group Recommended Buying Process

• The property should be reserved by way of placing a deposit which is usually in the order of £2,000 to take the unit off the market. Such reservation deposits are normally non-refundable unless specified otherwise. Vision Group will assist you with obtaining a receipt for your payment. In the case of a non-returnable deposit, Vision Group recommend that the wording of the receipt should always include a caveat that specifies that the deposit can be returned if any information provided by the vendor is materially different following pre-contract due diligence.
• Your solicitor will check all paperwork and will undertake all necessary searches on your behalf. Vision Group will keep you advised during this process.
• Your solicitor will study and, where necessary, negotiate the vendor’s contract or may draw up a new contract. Vision Group will ensure that all the terms and conditions agreed are correctly incorporated as per the original agreement.
• After the contract has been approved by all parties, it is signed by both the vendor and the buyer after which you will have approximately 14 days to pay / transfer the first main payment towards the purchase price. Usually the reservation deposit will form part of the first main payment.
• Once the contract is signed, it will be registered at the Land Registry office (TAPU) as a record of your legal interest in the property. At this time the Stamp Duty of 0.5% of the purchase price.
• Your solicitor will also make an application to the Council of Ministers for your purchase permit to be processed. In the meantime, once building work has been completed, or in the case of a resale or completed new building, you will have full possession of your property.
• On the day of completion your solicitor will request the balance of funds together with the payment of the Title Transfer Tax (see purchase costs below)

PROPERTY RELATED FEES, COSTS AND TAXES NORTH CYPRUS (AS OF APRIL 2020)

• STAMP DUTY - 0.5% of the contract price payable at the time of registration.
• VAT - 5% of the contract price payable to the vendor at key handover (normally applies to new properties only. In the case of a resale, VAT is only payable if not previously paid).
• TITLE TRANSFER TAX (as described above) - 3 or 6% (first time buyers pay 3%). This is payable at the time that the title is transferred to the name of the purchaser (provided the full amount has been paid, the permission to purchase (see NOTE i below) has been granted and the title deed is ready for the transfer).
• SOLICITORS FEE - £1,000 to £1,500. The level of fees depends on the level of services offered and whether there is a single or multiple properties being acquired.
• TRANSFORMER CONTRIBUTION - £1,500 to £2,500 (a one time contribution towards the connection of utilities and electricity on site).
• PROPERTY TAX - 1.5 TL per sq. m (approximately £18 per annum for a property of 100 sq. m, based on current exchange rate).
• RENTAL INCOME TAX - 10% of the rental income.

NOTE - PERMISSION TO PURCHASE.

A foreign purchaser of a property in North Cyprus must make an application for permission to purchase. This application is usually made by a lawyer. It is a fairly simple process whereby the purchaser must provide various documents as follows :

• Passport Copy
• Copy of purchase contract
• Site plan
• Original title deed
• A clean police record provided by the relevant police department in your country (usually this application from your police can be completed on line)